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Material Management Quiz | Material Management Objective Type Questions and Answers

(21) A schedule is satisfactory when:
[A] Capacity is consistent with the production plan
[B] Capacity is greater than the production plan
[C] It doesn't specify to the plant when to start production
[D] It doesn't specify to the plant when to stop production
Answer: Capacity is consistent with the production plan
(22) _______ and ______ are costs that increase or decrease with the quantity sold.
[A] Indirect labor, indirect material
[B] Indirect labor, direct material
[C] Direct labor, indirect material
[D] Direct labor, direct material
Answer: Direct labor, direct material

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(23) _______ is the capability of manufacturing to produce goods and services.
[A] Priority
[B] Planning
[C] Control
[D] Capacity
Answer: Capacity
(24) A _________ strategy means producing the amounts demanded at any given time.
[A] production leveling
[B] subcontracting
[C] TQM
[D] chase
Answer: chase
(25) Which is not a part of 5R’s of buying?
[A] Right Source
[B] Right Quantity
[C] Right Quality
[D] None of the above
Answer: None of the above
(26) Business cycle, price trends, National Economy are …………….
[A] Micro Factors
[B] Controllable Factors
[C] Macro Factors
[D] None of the above
Answer: Macro Factors
(27) The first activity of Purchasing cycle is
[A] Recognizing the need for procurement
[B] Source Selection and development
[C] Communicating requirement to the purchase
[D] Inspection of goods
Answer: Recognizing the need for procurement
(28) …………..are the basic materials which have not undergone any conversion since their receipt from suppliers.
[A] Finished Parts
[B] WIP
[C] Work Made Parts
[D] Raw Material
Answer: Finished Parts
(29) All portions of the material production from __________ to ___________ are considered to be a linked chain under the supply chain concept.
[A] raw material, final customer
[B] work in process, raw material
[C] work in process, final customer
[D] raw material, work in process
Answer: raw material, final customer
(30) Materials management is a coordinating function responsible for planning and controlling materials flow. Its objective(s) is/are:
[A] Maximize the use of the firm's resources
[B] Provide the required level of customer service
[C] Both of the above
[D] Neither of the above
Answer: Both of the above
31 Inventory not only makes up a portion of the cost of goods sold but has to be purchased at the beginning of production to be processed into finished goods. This type of inventory is called _____________.
[A] finished goods
[B] raw materials
[C] work-in-process
[D] none of the above
Answer: work-in-process
32 ______ must satisfy the demands of the marketplace. It does so by using plants, machinery, equipment, labor, and materials as efficiently as possible.
[A] Production
[B] Marketing
[C] Finance
[D] Engineering
Answer: Production
33 ____________ is the first step in a manufacturing planning and control system.
[A] Maintaining the planned backlog
[B] Maintaining the required inventory levels
[C] Achieving the forecast
[D] Production planning
Answer: Production planning
34 Critical resources in rough-cut capacity planning include:
[A] Bottle-neck operations
[B] Labor
[C] Critical materials
[D] All of the above
Answer: All of the above
35 In the __________________ environment, many end items can be made from combinations of basic components and subassemblies.
[A] assembly-to-order
[B] make-to-stock
[C] make-to-order
[D] engineer-to-order
Answer: assembly-to-order
36 Since _______ demand is not related to the demand for any other assemblies or products, it must be ___________.
[A] independent, calculated
[B] dependent, forecast
[C] independent, forecast
[D] dependent, calculated
Answer: independent, calculated
37 All major inputs to the MRP system include:
[A] Master production schedule, inventory records, and bills of material
[B] Master production schedule and bill of material
[C] Bill of material and inventory records
[D] Inventory records and master production schedule
Answer: Master production schedule, inventory records, and bills of material
38 Financially, inventories are very important to manufacturing companies and represent _________ of total assets on the balance sheet.
[A] 20% to 60%
[B] 10% to 45%
[C] 25% to 40%
[D] 50% to 80%
Answer: 20% to 60%
39 Inventory serves as a buffer between:
[A] Finished goods and component availability
[B] Customer demand and finished goods
[C] Supply and demand
[D] All of the above
Answer: All of the above
40 _______is a measure of customer service.
[A] Percentage of orders shipped on schedule
[B] Percentage of line items shipped on schedule
[C] Order-days out of stock
[D] All of the above
Answer: All of the above

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